| Philips Consumer Lifestyle - Operational Excellence |
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Philips Consumer Lifestyle (PCL) is one of the world's main players in the field of consumer electronics, mobile infotainment and home entertainment. It is the largest division in terms of turnover of Royal Philips Electronics N.V., Europe’s largest electronics manufacturer. PCL Supply Operations Europe is responsible for all European Supply Chain activities and is constantly looking for more flexibility and for control over its key service providers throughout the supply chain. LHC was consulted to support PCL in its drive for operational excellence by designing a senior management performance dashboard. The dashboard identifies the performance of the different service providers and determines the focus of all parties, strengthened via contractually defined indicators. LHC appraised the existing supply chain structure consisting of both National and European distribution centres, each outsourced to different service providers. A standardisation of contracts was established in which a comparable tariff structure and a target-driven reward methodology were agreed upon. Finally, the dashboard was constructed and deployed in such a manner that the performance measurement on all essential elements was standardised and used to try to achieve operational excellence. The ongoing performance measurement and management process is controlled by PCL Supply Operations Europe in cooperation with LHC. The dashboard is filled in locally on a monthly basis and compiled into an overview for European Management in order to track financial and operational implications. In order to enhance performance on a continuous basis, structural problems are identified and resolved via a PDCA cycle. Manager Operations, Philips Consumer Lifestyle SOE: “The added value of LHC can be described as taking ownership of tasks in assignment, self-propelling, building trust in international community to create buy-in for program objective and approach, monitoring process in detail and with commitment, with early warning signals to avoid the project and program drifting from scheduled deliverables and timeline.” |
